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Commercial Gold Production Commences On Belize Property
Oct. 03, 2007
Commercial Gold Production Begins
Erin Ventures Inc. (TSX-Venture: EV) reports that commercial production of gold is underway on its Ceibo Chico Property in Belize. Field trials of Erin’s gold recovery dredge are now complete, with the dredge operating at, or near, its design capacity. The production goal for the dredge is to process 60+ yards of gold-bearing material per hour, 18 hours per day, 6 days a week, for as long as the property yields a sufficient quantity of economically viable material to justify continued operation.
Field Trial Production Results
Production results during the field trials met management’s expectations, and include:
- A total of 13,959.9 grams (448.8 oz.) of placer gold was recovered over 69 days of field testing.
- Gold recovery rates averaged 0.48 grams of Au per cubic yard, worth US$11.26 per cubic yard.1
- Direct recovery costs averaged approximately US$1.96 per cubic yard.2
1 At current gold prices of US$730 per oz., and allowing for a refining melt loss of 7% to 9% and 850 Fine raw gold.
2 Based on 55 yards per hour production rate, 8 hours a day, for 26 days a month.
The field trials were conducted over a 3 month period (from mid June to mid September 2007). The trials confirmed the viability of using this type of mining system for the economic recovery of the placer gold contained within the Fan area of the Ceibo Chico Creek drainage system. Although improvements to production levels continue, the field trials allowed for design modifications and training of the dredge crew, so as to maximize throughput, overall gold recovery rates, and profitability.
Revenue from Gold Production
In August and September of 2007, Erin sold a total of 9,917.1 grams (318.8 oz.) of raw gold that was recovered during the pre-production Belize field trials, for net proceeds of $149,800. The sale was conducted through Technic Canada of Markham, Ontario. Additionally, Erin’s current gold inventory stands at approximately of 3,100 grams (100 oz.) of unrefined gold. Direct operating costs relating to the gold production averaged $22,400 per month, totaling $67,200 for the 3 month field trial period.
On behalf of the Board of Directors,
Blake Fallis, General Manager
The technical information in this release was prepared by James E Wallis, M.Sc. (Eng), P. Eng. a director of the Corporation, who is a Qualified Person under National Instrument 43-101.
About the Ceibo Chico Gold Prospect
- The property consists of 4 contiguous Exclusive Prospecting Licenses covering approximately 34 square kilometers (13 square miles), and a 160.25 hectare (396 acre) Mining License, in west/central Belize.
- Erin has an option agreement to acquire up to 90% equity in the Prospect.
- The local geology consists of intrusive and meta-sedimentary rocks which are bounded by volcanics to the south and Upper Cretaceous limestones to the north.
- A 2 km wide zone in the upper area of the drainage system appears to be the host rock for the residual gold in the drainage system.
- Erin has commenced gold production of the alluvial gold found on the Fan to establish cash flow to help off set exploration costs.
This appointment is subject to TSX approval.
Erin Ventutures Inc.
Phone: 1-250- 384-1999 or 1-888-289-3746
www.erinventures.com
A Schwab and Associates (Investor Relations).
Phone: 1-250-764-7677 or 1-800-537-4099
Email: aschwab@silk.net
Erin’s Public Quotations:
Canada
TSX Venture: EV
USA
SEC 12G3-2(B) #82-4432
OTCBB: ERVFF
Europe
Berlin Stock Exchange: EKV
Forward Looking Statements
This release contains forward looking statements. The words "believe," "expect," “feel,” "plan," "anticipate," “project,” “could,” “should” and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are subject to a number of risks and uncertainties including, without limitation, variations in estimated costs, the failure to discover or recover economic grades of minerals, and the inability to raise the funds necessary for the continued operations of the Company, changes in external market factors including commodity prices, and other risks and uncertainties. Actual results could differ materially from the results referred to in the forward-looking statements.
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